In this market of low inventory, some people are thinking of building their next home instead of buying a resale. Did you know that our team is distinctive within the real estate industry? We have 12+ years of experience working every day with new homes. Few real estate agents work as closely with builders and new construction nuances as we do, so we are especially equipped to help our clients through the unique experience of starting a home from scratch. Here are few thoughts if you, or someone you know, is thinking of brand new. As always, location is first. There are subdivision options all over Kansas City, where you first choose your homesite and then, a floor plan and builder. If you are looking in a neighborhood, know that there may be only specific builders allowed and your home’s design and exterior finishes may have to follow certain HOA requirements. If you have land or want to purchase land (Did you know we can help with that too?!), you can choose your own builder, but need to know which builders are willing and have experience in building on raw land; our familiarity with the industry and build process will help you qualify builders. A second consideration is timing. Right now, builders are averaging construction times of 12 to 15 months. Building a very customized home can take up to two years. These extended time frames mean that mortgage interest rates are an important part of the discussion upfront. To lock your interest rate early in the process, you may want to consider the benefits of a construction-to-perm loan. We have experience with this unique loan product and can guide you to the lenders who best handle these types of loan. Another primary consideration is cost. As you have likely heard, building costs have risen at a fast pace since the start of the pandemic. There is some price stabilization now but understanding how pricing is handled is a key component of building vs buying an existing house – we can help. One big advantage to building in this market? You will not be competing with the pent-up demand that is driving some bidding wars. And you can truly create the home you’ve dreamed about. We are happy to chat with you about the entire process so you can decide if building is right with you, and when you’re ready, we’ll connect you with builders and lenders.
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